Trump Drops 100% Tariff Threat on Greenland, Says NATO Agreed to 5-Point Arctic Deal Framework

Trump cancels his tariff threat against Greenland after NATO agrees to a framework for a future Arctic deal. Key developments and global impact

President Donald Trump announced Wednesday (January 21, 2026) that he was cancelling his planned tariff on U.S. allies in Europe over U.S. control of Greenland after he and the leader of NATO agreed to a framework of a future deal on Arctic security.

The abrupt about-face emerged hours after Mr. Trump had insisted that he wants to “get Greenland, including right, title and ownership,” but said he would not use force to do so while deriding European allies and vowing that NATO should not try to block U.S. expansionism.

In an extraordinary speech at the World Economic Forum, the President said he was asking for territory that was “cold and poorly located.”

He said the U.S. had effectively saved Europe during World War II and even declared of NATO: “It’s a very small ask compared to what we have given them for many, many decades.”

“We probably won’t get anything unless I decide to use excessive strength and force, where we would be frankly unstoppable. But I won’t do that, OK?” Mr. Trump said, later adding, “I don’t have to” and “I don’t want to use force.”

Mr. Trump often tries to increase pressure on the other side when he believes it can lead to a favourable deal, and he seemed happy to do so ahead of the forum in Davos.

The implications of his remarks were enormous, potentially rupturing an alliance that has held firm since the dawn of the Cold War and seemed among the globe’s most unshakable pacts.

NATO was founded by leading European nations, the U.S. and Canada to form a bloc to counter the Soviet Union. Its other members have been steadfast in saying Greenland is not for sale and cannot be wrested from Denmark, meaning Mr. Trump’s comments could yet mark the beginning of a larger geopolitical standoff.

The President has long said the U.S. will get control of Greenland no matter what it takes, arguing that Washington needs the world’s largest island to counter threats in the surrounding Arctic Ocean from Russia and China. That’s despite America already having a large military base there.

A Danish government official told The Associated Press after Mr. Trump’s speech that Copenhagen is ready to discuss U.S. security concerns. But the official, who was not authorised to comment publicly and spoke on condition of anonymity, underscored the government’s position that “red lines”— namely Denmark’s sovereignty — must be respected.

Greenland’s government responded by telling its citizens to be prepared. It has published a handbook in English and Greenlandic on what to do in a crisis that urges residents to ensure they have sufficient food, water, fuel and supplies at home to survive for five days.

“We just went to the grocery store and bought the supplies,” Tony Jakobsen in Greenland’s capital Nuuk said, showing off the contents of bags that included candles, snacks and toilet paper.

Mr. Jakobsen said he thought Mr. Trump’s rhetoric towards Greenland was “just threats… but it’s better to be ready than not ready.”

Mr. Trump, meanwhile, urged Denmark and the rest of NATO to stand aside, adding an ominous warning.

“We want a piece of ice for world protection, and they won’t give it,” Mr. Trump said. “You can say yes, and we will be very appreciative. Or you can say no, and we will remember.”

He also called for opening “immediate negotiations” for the U.S. to acquire Greenland. In subsequent comments to reporters, he declined to name a price that might be paid, saying only, “There’s a bigger price, and that’s the price of safety and security and national security and international security.”

Danish Foreign Minister Lars Lokke Rasmussen said he was encouraged by Mr. Trump’s comment about not using U.S. military force but called other parts of the speech “a way of thinking about territorial integrity that does not match the institutions we have.”

“Greenland is part of NATO. Denmark is part of NATO, and we can exercise our sovereignty in Greenland,” Mr. Rasmussen said.

In his remarks, Mr. Trump also argued that the U.S. is booming and its economy is strong, in sharp contrast to Europe.

“I want to see Europe go good, but it’s not heading in the right direction,” said Mr. Trump, who also noted, “We want strong allies, not seriously weakened ones.” He said of European economies, “You all follow us down, and you follow us up.”

His arrival was delayed after a minor electrical problem on Air Force One forced a return to Washington to switch aircraft. As Mr. Trump’s motorcade headed down a narrow road to the speech site, onlookers — including some skiers — lined the route. Some made obscene gestures, and one held up a paper cursing the President.

Billionaires and top executives packed inside the forum’s Congress Hall, which held around 1,000, for Mr. Trump’s keynote address. The space was filled to the standing room only. Attendees used headsets to listen in six languages besides English, and the reaction was mostly polite applause.

Afterward, Mr. Trump met with the leaders of Poland, Belgium, and Egypt and again repeated that the U.S. would not be invading Greenland.

“Military is not on the table,” Mr. Trump said, suggesting that the parties involved would use better judgment.

Trump Drops 100% Tariff Threat on Greenland, Says NATO Agreed to 5-Point Arctic Deal Framework